preferred stock

American  

noun

1. stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.

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preferred stock British  

noun

1. Also called (in eg Britain, Australia): preference shares.  shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preferred stock usually carries a definite rate of dividend that is generally lower than that declared on common stock

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Etymology

Origin of preferred stock

An Americanism dating back to 1840–50

Example Sentences

See Examples For:

preferred stock

The problem now is that mNAV overstates Strategy’s enterprise value—the ratio’s numerator—by using the face value of its debt and preferred stock rather than their market value.

From The Wall Street Journal ● Jul. 6, 2026

Strategy had previously been issuing preferred stock and selling common stock to raise money to buy and hold bitcoin.

From MarketWatch ● Jul. 6, 2026

But it would have been 1.04 using market values for its debt and preferred stock, only a slight premium.

From The Wall Street Journal ● Jul. 6, 2026

The company said it used the money raised to fund payment of distributions on preferred stock, and to replenish the money used from its U.S. dollar reserves for the distributions.

From MarketWatch ● Jul. 6, 2026

Treasury didn’t ask for a piece of the action, or management changes, or for that matter anything at all except for a teaspoon of out-of-the-money warrants and preferred stock.

From "The Big Short" by Michael Lewis